Pertagas starts operating Arun-Belawan pipeline

After a construction process since August 2013, PT Pertamina Gas (Pertagas), a subsidiary of state owned oil and gas firm PT Pertamina, started commissioning the Arun-Belawan gas pipeline on Thursday.

The firm has received 185 mmscfd of gas from ExxonMobil Indonesia?s (EMOI) fields for the commissioning.

The trial operation was witnessed by Minister of Energy and Mineral Resources Sudirman Said and Pertamina?s New Energy Director Yenni Andayani, Petamina said in a statement.

Pertagas?s President Director Hendra Jaya said the project has been completed on schedule. In the first phase, the 350-km pipeline with a capacity of 300 mmscfd is channeling gas to PLTGU Belawan combined cycle power plant in North Sumatra owned by state owned electricity firm PT Perusahaan Listrik Negara (PLN).

?We are very pleased that the Arun-Belawan pipeline has finally come into operation to supply gas to be used to solve the electricity crisis and to meet the energy demand of the industries. It is much needed by people in North Sumatra and Aceh to develop their economies,? he said.

If the trial operation is successful, the pipeline will enter commercial stage in the first quarter of 2015. In the next step, Pertagas will build a 120-km pipeline to distribute gas to industries in the Medan Industrial Estate (KIM) and the Sei Mengkei Special Economic Zone (KEK). Based on plans, the gas will come from the Arun LNG regassification plant which will start operation in January 2015 under PT Perta Arun Gas (PAG).

?Barring obstacles, KIM and KEK will receive gas in June 2015,? he said.

Editing by Johannes Simbolon